On August 17-18, 2017 Center for Financial Frictions (FRIC) and the ERC project FRICTIONS at The Department of Finance hosted the fifth international conference on financial frictions: FRIC'17 Conference on Financial Frictions

Center for Financial Frictions

FRIC in the news

FRIC in the news 2016

Below you can find selected news items where FRIC research or FRIC members have been featured.

FRIC research creates headlines

Research by FRIC member and associate professor at the Department of Finance, Jens Dick-Nielsen and his co-authors is the basis for a discussion of the current LCR (Liquidity Coverage Ratio) regulation in the EU. Read more about it here.

FRIC in the news 2015

The FRIC'15 Conference took place August 24-25, 2015 and had 170 registered participants. Among the keynote speakers, the conference featured Nobel Laureate Lars Peter Hansen, University of Chicago.

To Finanswatch, Lars Peter Hansen said: ”Financial frictions is an important subject, which we may have underestimated. But it is fundamentally important how people relate to uncertainties, and the work that David (Lando, ed.) and Lasse (Heje Pedersen, ed.) do, is really at the forefront and it is also a subject that the rest of us are highly interested in". (Translated from the Danish quote).

Associate professor and FRIC center member Jens Dick-Nielsen was interviewed for the Global Risk Regulator in connection with his research on bond market liquidity and was subsequently invited for the OECD Financial Roundtable on liquidity in Paris.

Research paper featured in Financial Times

The research paper Buffet's Alpha by Lasse Heje Pedersen and co-authors was featured in the Financial Times article (28 February, 2014): How to invest like Warren Buffet

David Lando in Finanstilsynet

Center leader David Lando was featured in the Finanswatch article (1 July 2014) Her er tilsynets ny bestyrelse as an 'academic heavy-weight' in relation to his nomination in the Danish Financial Supervisory Authority (Finanstilsynet).

FRIC in the news 2013

FRIC research changes EU banking regulation

Covered bonds are considered assets of extremely high liquidity in the final EU Capital Requirement Directive draft (CRD IV). This is a new way of considering covered bonds and research by FRIC member Jens Dick-Nielsen and co-authors has been cited as the key argument for changing the status for Danish covered bonds in CRD IV.

The new status for covered bonds follows a recent report by the European Banking Authorities (EBA). It is the EBA who will eventually decide on the exact definitions of highly liquid assets eligible for use in the calculation of the Liquidity Coverage Ratio (LCR).

The EBA report primarily cites the paper by Dick-Nielsen, Gyntelberg and Sangill (2012), when talking about covered bond liquidity and the potential methodology for how to assess the liquidity of other European covered bond markets as well.

At the moment, only Danish covered bonds fulfill the requirements for being extremely liquid. The extended definition of assets with extremely high liquidity to include covered bonds will therefore benefit both Danish financial institutions and the Danish mortgage bond market as a whole.

Uncovering Warren Buffett’s success

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”, said investment guru Warren Buffett once. Professor Lasse Heje Pedersen, researcher at the FRIC Center for Financial Frictions, has now uncovered Buffett’s success together with his colleagues Andrea Frazzini, New York University, and David Kabiller, AQR Capital Management.